Pell Grant Preservation and Expansion Act of 2026

Key Points

• The bill roughly doubles the maximum Pell Grant, raising it from about $7,395 today to $10,000 for the 2026-2027 school year and stepping it up each year until it reaches $15,000 by 2031-2032. After that, the amount automatically rises with inflation based on the Consumer Price Index.
• Pell Grant funding would shift from discretionary to mandatory spending, meaning money is automatically provided each year without needing separate Congressional approval during budget debates. This is meant to make the program more stable and predictable for students and families.
• Dreamer students, those who came to the U.S. as children and are not citizens or permanent residents, would become eligible for federal financial aid if they meet requirements like earning a high school diploma or serving in the military. Currently these students are generally locked out of federal student aid.
• The total semesters a student can receive Pell Grants jumps from 12 to 18, giving more time to students who work while in school, have family obligations, or need extra coursework to finish their degree.
• Students receiving means-tested benefits like SNAP or Medicaid would get an extra $1,500 added to their Pell Grant through a negative student aid index, recognizing that these students face deeper financial need.
• Students who leave school and stay out for at least two years get their academic progress record reset for financial aid purposes, giving them a fresh start if they return to college. They can use this reset up to two times.